, but one thing is for sure: the chaotic event has made it a lot more expensive for companies with bad credit to raise capital.
The spillover effect of higher fundraising costs is also set to impact countless small startups that relied on Silicon Valley Bank to offer loans and extend lines of credit to companies that lacked profits, and sometimes even revenue. "We are now beginning to see early signs of businesses that built their operating models around the false equilibrium [of near-zero interest rates] begin to struggle," Cunningham said in a Monday note. That's leading to more zombie companies, or companies that rely on low financing costs to fund their business, that could ultimately default.
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